Miner touts big coal potential

A coal company says a new mine for north Queensland could generate hundreds of millions of dollars for the state's economy.

Guildford Coal says it is about to submit an application to mine an area stretching from Hughenden to Pentland.

Chairman Peter Lind says says it will be the first major production of coal in the north Galilee Basin in decades.

"On the numbers that we've seen we're confident we have a viable project and we will be able to, as a flagship Australian junior miner, we'll be able to have significant employment and investment in our local community," he said.

Mr Lindsay says depending on the price of coal, it has the potential to generate hundreds of millions of dollars.

"This project is the next major infrastructure project in north Queensland, there'll be very significant upgrades to rail and port infrastructure," he said.

However, he will not reveal where the coal will be shipped from.

"We don't rule anything in or anything out at this stage, it's not been determined where the coal will be exported from," he said.